Peloton acquires Precor for $420 million

This evening Yahoo news broke the news that Peloton would be acquiring Precor for $420 million. Peloton followed this up with a press release

One big benefit of this acquisition is it will give Peloton some US-based manufacturing capability, to compliment their previous acquisition of Tonic. This might allow them more flexibility with future port & shipping delays. Specifically, Peloton will gain ” 625,000 square feet of U.S. manufacturing capacity with in-house tooling and fabrication, product development, and quality assurance capabilities in Whitsett, North Carolina and Woodinville, Washington.”

Peloton will be able to control the entire production process, from design to ship, and increase total production scale, while maintaining a high level of product quality. By making fitness equipment closer to U.S. consumers, Peloton will be able to deliver connected fitness products to Members sooner.

The Precor U.S. facilities will join Peloton’s existing manufacturing network with its third party manufacturers and the Tonic facilities based in Taiwan. Once the transaction closes, the Precor U.S. facilities will provide Peloton with incremental operational scale and flexibility to support the growth of its connected fitness product line.

This will also get Peloton more R&D employees, for future products (like the Rower?)

The acquisition would add a team of nearly 100 dedicated research and development employees to Peloton’s accomplished R&D team. With decades of experience designing and engineering cardio and strength fitness equipment and user experiences, the Precor team plans to work with the Peloton R&D team to design and create the next generation of connected fitness experiences.

Peloton will now be able to market & sell their products through Precor’s extensive contacts in the corporate, wellness, and hotel arenas (Don’t forget we have a hotel finder that lists hotels, gyms, vacation rentals and more with Peloton equipment!).

Precor will operate as a division within Peloton.

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Chris L
Chris is the founder of Pelo Buddy. He purchased his Peloton in 2018, and has been riding and running ever since. You can find him on the leaderboard at #PeloBuddy.

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